What does promoter holding mean?
A promoter is the founder, family or parent company that controls a listed company. Promoter holding is the share of the company that this group owns.
SEBI's definition covers anyone named as promoter in the offer document or annual return. It also covers anyone who controls the company, or whose advice the board usually follows.[S1]
Who is in the promoter group?
The promoter group adds the promoter's immediate relatives: spouse, parents, siblings and children. It also adds linked companies, such as subsidiaries and firms where the promoter owns 20% or more.[S1]
Where is it reported?
Every listed company files a shareholding pattern with the stock exchanges each quarter, within 21 days of the quarter end.[S2]
Each promoter and promoter-group entity is listed by name. All their shares must be held in demat (electronic) form.[S2]
Is there a ceiling?
Yes. A listed company must keep at least 25% of its shares with the public.[S3]
Once any phase-in period ends, non-public holders can own at most 75%. Large new listings get 3 to 10 years to get there, and the Government can exempt government-controlled companies.[S3]
If the public share falls below 25%, most companies get up to 12 months to restore it. Listed public sector companies get two years.[S3] The public shareholding entry explains who counts as public.
Can a company have no promoter?
Yes. HDFC Bank's shareholding pattern shows no promoter group.[S4] Its Cityfort page says "No promoter" instead of showing a pledge panel.
Where do you see it on Cityfort?
Every stock page shows promoter holding in "Who owns it", with up to 12 quarters of history. Any pledged promoter shares appear beside it, as explained in promoter pledging.